What's Going On With SK hynix Stock Wednesday?

SK hynix Inc. (NASDAQ:SKHY) stock rose more than 3% in Wednesday premarket trading as investors showed stronger appetite for technology and semiconductor stocks. Nasdaq futures gained 0.42%, while S&P 500 futures rose 0.21%. SK Hynix Eyes Intel’s Ohio Fabs As AI Memory Crunch Intensifies SK hynix Inc. (NASDAQ:SKHY) is reportedly in talks with Intel Corp. (NASDAQ:INTC) about a potential deal that could bring SK hynix memory chip production to the U.S. for the first time. Reuters reported Wednesday that the discussions include several possible structures. One option would have SK hynix lease part of Intel’s planned semiconductor manufacturing complex in Ohio. Another could involve a joint venture between the companies and major cloud providers seeking to secure memory chip supplies. The talks remain exploratory, and no decisions have been made, according to the report. AI Boom Drives Memory Demand A deal could help Intel fill capacity at its delayed Ohio project while giving SK hynix a U.S. manufacturing foothold. Demand for memory chips has surged as companies pour money into artificial intelligence infrastructure. SK hynix is a leading supplier of high-bandwidth memory, or HBM, used in AI accelerators. The company also makes DRAM for servers, PCs and smartphones, as well as NAND flash memory. SK hynix said it is reviewing options, including additional production bases, to strengthen its memory business. However, it said nothing has been decided. See More: Top Value Stocks Seoul Approval Could Be A Hurdle Any plan involving advanced HBM or DRAM production could face scrutiny from South Korea. The technologies are considered sensitive, and certain investments involving “national core technology” require government review. Meanwhile, Intel’s Ohio expansion has faced delays. In 2022, Intel unveiled plans to spend as much as $100 billion on a massive semiconductor manufacturing hub in Ohio, initially targeting production in 2025. However, the project has faced significant delays, with the two factories now expected to be completed in 2030 and 2031. SK hynix Analyst Outlook The stock carries a Buy consensus rating and an average price forecast of $247.67. JPMorgan initiated coverage with an Overweight rating and a $245 price forecast on Sept. 10. Needham maintained a Buy rating and raised its price forecast to $220 on Aug. 24. Wolfe Research initiated coverage with an Outperform rating and a $200 price forecast on Aug. 4. Top ETF Exposure SK hynix has significant exposure through the GraniteShares 2x Long SK Hynix Daily ETF (NASDAQ:SKUU), where it carries a 66.70% weight. The NestYield Dynamic Income ETF (NYSE:EGGY) has a 5.05% weight, while the NestYield Visionary ETF (NASDAQ:EGGQ) has a 4.96% weight. Benzinga Edge Rankings The Benzinga Edge scorecard gives SK hynix a Growth score of 98.46 and a Value score of 55.39. The readings point to strong growth characteristics alongside a more neutral value profile. The stock’s ability to remain above its short-term moving averages could help determine whether it can challenge its September high. Price Action: Intel shares were up 5.03% at $102.03 and SK hynix shares were up 3.49% at $180.93 during premarket trading on Wednesday, according to Benzinga Pro data. Image via Shutterstock Read Also: NVIDIA CEO Says AI Spending Flywheel Is ‘Really, Really Flying’